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Borrowing a car

 I’m borrowing my friend’s car … am I covered?

 

Most people have an idea of what’s covered and not covered under their various insurance policies. But at TAG Insurance, we get a lot of questions about borrowing or loaning a car.

 

Now that summer is here, and you might be looking to borrow your neighbor’s truck for a home-improvement project or a trip to the local landfill, we thought it was a great time to provide a little more information.

 

Generally, insurance coverage follows the vehicle rather than the driver. So in most instances, as long as the owner of the car has insurance, it’s covered even if someone other than the owner is driving it — as long as they have the owner’s permission.

 

The borrower’s insurance is considered secondary, meaning that in the event of an accident, it could apply if the owner’s insurance is insufficient to fully cover the damage.

 

It’s important to note that there are some exceptions to what is called “permissive use” coverage. For example, permission must be given by the owner, unless the borrower has a reasonable belief that they are allowed to use the car. However, the borrower cannot give permission to someone else. So if your teenager allows one of his or her friends to drive your car to Boulder, your coverage likely won’t apply.

 

Coverage might also be denied if the borrower operates the vehicle in a negligent or criminal manner. And if the borrower is using your car for business purposes, your personal auto policy likely won’t cover that.

 

If you have a regular long-term arrangement to either borrow or lend a car, the borrower should probably be added to the owner’s personal auto policy. Those who don’t own a car, but often borrow one, might also consider “named non-owner coverage,” an endorsement that provides bodily injury and property damage liability, uninsured motorists coverage and more.

 

Ultimately, it’s usually safe to loan your friend your car for occasional errands or projects. And the same goes for borrowing a car. Just make sure it’s for “normal” use. You’ll want to confirm that the car has coverage and that your insurance, whether you’re the owner or borrower, will apply.

 

 

 

Feel free to find one of our agents at www.tagins.net with any questions  — after all, you don’t want to wait until after an accident to get answers!

SR-22-What you need to know

SR-22 form details vary by jurisdiction. But put generally, an SR-22 is a certification  that is required by many states as a way of proving that an individual has current auto insurance coverage. These documents are often required for drivers who are considered high risk due to having had a DUI/DWI, being cited for driving without insurance, or having been involved in a traffic accident while not covered by insurance. The SR-22 allows you to provide proof of minimum Liability Coverage to law enforcement officials, if necessary.

SR-22 does not replace insurance

It’s important to understand that even though you may hear it referred to as “SR-22 insurance,” an SR-22 is not auto insurance and is not a substitute for auto insurance. Instead, it is simply certification that your auto insurer provides to your state that proves you have auto liability policy coverage that meets the state’s minimum requirements.

Who needs an SR-22?

If you need an SR-22, it will likely be because of a court order. High-risk drivers may have to obtain an SR-22 with respect to incidents including, but not limited to:

  • DUI or DWI
  • Repeated reckless driving
  • Multiple at-fault accidents or infractions
  • Driving or being involved in an accident without insurance

A court will determine if you should be allowed to have your license reinstated and under what restrictions. As a part of this, an SR-22 may be required. In certain circumstances, the SR-22 allows drivers to continue to drive legally, although they will have a restricted license.

How long to expect to have an SR-22

The duration of an SR-22 obligation varies by state and the nature of the underlying traffic offense(s).  In some states, this duration may be as short as one year or as long as five.  Generally speaking, a typical SR-22 period lasts from 2-3 years.

Auto Insurance Discounts

Auto Insurance Discounts

As independent insurance agents, we have access to a large number of insurance carriers.  These insurance companies offer a variety of discounts that can have a dramatic effect upon your premiums.  The following list of auto insurance discounts is not comprehensive, but it should hopefully give you an idea of the discounts that are available:

Vehicle Equipment

Air Bag

You could save up to 25% for driver-side air bags or 40% for full-front seat air bags. These discounts apply to the medical payments or personal injury portion of your car insurance premium.

Anti-Lock Brake System

Does your car have a factory installed anti-lock braking system?  You could receive a 5% discount on the collision portion of your premium.

Anti-Theft System

Cars with a built-in anti-theft system could earn you a discount of up to 25% on the comprehensive portion of your premium.

Daytime Running Lights

Vehicles equipped with Daytime Running Lights as standard equipment could earn you a 3% discount on certain car insurance coverages.

Driving History & Habits

Five-Year Accident-Free Good Driver

Got a squeaky clean driving record? It could translate into serious auto insurance discounts. If you’ve been accident-free for five years, you may be able to save up to 26% on most coverages.

Seat Belt Use

Buckle up and drive down your rate. If you and your passengers always wear seat belts, you could receive a discount of up to 15% off the medical payments or personal injury protection portion of your premium.

Driver’s Education

Defensive Driving Discounts

If you’ve completed a defensive driving course, you may be able to save even more on your premium.

Driver’s Education

If a young driver in your family has completed a driver’s education course, you may earn a discount on most coverages.

Good Student

Full time students with a good academic record could be eligible for up to a 15% discount on certain coverages. (In most states, policyholders between the ages of 16 and 25, who are full-time students with a “B” average or better, are eligible for this discount.)

Customer Loyalty

Multi-Car

Insure more than one car with the same insurance company and you could get a discount of up to 25% on most of your car insurance coverages.

Multi-Policy / Multi-Line Discount

When you insure your car through the same insurance and have a Homeowners, Renters, Condo or Mobile Home policy, you could get a discount on your car insurance.

To find out more about the insurance discounts you may qualify for, please give us a call.